Also removes mention of CEO JuE Wong "dismissing" infertility claims. The brand is focused on moving on from the lilial controversy, and strengthening trust within the community through science-led and fact-based conversations, she says.Ĭorrection: This article has been updated to clarify that Olaplex made the decision to spend $4.3 million on disposing of stock and were not forced to do so. We never rest on our laurels,” says Wong. “Olaplex always operates with some paranoia. Beauty has a more well-rounded definition where people want to feel good.” “It’s no longer about just putting on makeup and feeling beautiful. Not only does Olaplex align with consumer preferences for brands built on science and efficacy, the definition of beauty has also changed, explains Coresight’s Driscoll. “We realised that consumers don’t see us as a haircare company but as one backed by science and technology,” says Wong, noting that haircare remains the key focus for the company. It's already a top-selling brand at Ulta Beauty thanks to its “proven results, affinity and category innovation,” says the retailer's vice president of merchandising Jessica Philips. Wong's priority is for Olaplex to “go deep, not wide” with each of its retail partners. Specialty retail represents 35 per cent of sales, and direct-to-consumer about 25 per cent. Olaplex’s “professional” segment, which refers to distribution from hair salons, remains the brand’s primary sales channel, accounting for 41 per cent of total revenues, according to the brand. Olaplex is expanding with new and existing retail partners, including Ulta Beauty, the largest specialty beauty retailer in the US. Science-backed skincare brands like Augustinus Bader and Dr Barbara Sturm have also expanded into hair and scalp care. Even though big companies like L’Oreal and Estée Lauder have haircare businesses, they were small relative to makeup and skincare.” Today, an increasing number of hair brands including K18, Bumble and Bumble, Aveda and Kendra’s Boutique offer bonding and repair solutions. “It really wasn’t an area that investors paid a lot of attention to in the past. Last year annual revenues more than doubled to $598.4 million, and in September 2021 it raised $1.8 billion in an IPO valuing the company at more than $15 billion.īonding and repair is used in the professional industry - brands like Brazilian Bond Builder, Wella and Redken all have bonding agents that they use alongside their colour system - but Olaplex was the first to generate a buzz in the market, says Jefferies’ Wissink, as well as creating a halo effect around the premium haircare sector. It’s still found in every Olaplex product. “I also think that because the product is so efficacious, consumers will feel inclined to look further into the product and how it works, beyond a headline.” Creating a hair repair ‘buzz’įounded in 2014 and originally sold exclusively in salons for consumers looking for products to reverse the effects of hair styling, colouring and heat damage, Olaplex’s line of shampoos, conditioners, oils and hair treatments includes a patented star ingredient, bis-aminopropyl diglycol dimaleate, to repair and reconnect broken bonds in hair. While consumers may have initially felt worried, investors were less spooked, she says. It makes headlines but it’s not somewhere you go for deep analysis,” argues Marie Driscoll, managing director of luxury and fashion at advisory firm Coresight Research. Still, the information and news flow on TikTok is often “very superficial. Olaplex did not comment on Kay’s post specifically. Still, it’s continued life online poses a real risk to Olaplex as “it’s a company that positions and commercialises itself as being backed by science, so in the moments where efficacy, performance and safety are called into question, it’s going to require the company to do everything they can to remediate that,” says Wissink. Kay did not respond to requests for comment. To date, Kay’s video has over a million views and thousands of likes.
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